504 Loan Details

• The interest rate will be fixed for the entire term of the loan
• Interest rates are priced at a margin above the current market rate for five-year and 10-year U.S. Treasury issues
• See our current interest rate and a history of rates here

Terms

• Maturities of 10 and 20 years are available
• Loan is fully amortized over the chosen 10 or 20 year term
• Lines of credit are not eligible

Fees

• Fees total approximately three (3) percent of the debenture and will be financed into the SBA loan

Minimum Debenture

• The minimum debenture for the SBA portion of the loan is $60,000.  This equates into a total project amount of about $150,000

Maximum Debenture

• $5 Million for most 504 loans
• $5.5 Million for small manufacturers

Borrower Injection

The borrower may provide the 10-20% injection in the following ways:

• Personal or business cash
• Equity in real estate (special conditions apply)
• Personal or business loan

Amount Financed 

Typically, the Partner Bank finances 50% of the total project amount, the SBA finances 40% and the small business injects 10% cash/equity. If the building is deemed Special Purpose, the borrower would be required to inject an additional 5% cash/equity, for a total injection of 15%. If the business is considered a New Business, the borrower would be required to inject an additional 5% cash or equity, for a total injection of 15%. If the business is a new business and the building is  special purpose, the borrower would be required to inject an additional 10% cash or equity, for a total injection of 20%.